SEC Shuts Down Crypto Schemes Targeting OFWs in May
The Securities and Exchange Commission froze assets and issued cease and desist orders against two unregistered crypto investment schemes this May. BG Wealth Sharing specifically targeted overseas Filipino workers, offering 1.3% daily interest through its DSJ Exchange platform.
Key Takeaway
SEC's twin shutdown shows regulators treating crypto copy-trading schemes promising guaranteed returns as unregistered securities fraud.
The Securities and Exchange Commission froze the assets of BG Wealth Sharing Ltd. on May 20, just six days after ordering Riscoin to cease operations.
BG Wealth Sharing specifically targeted overseas Filipino workers, offering 1.3% daily interest through its DSJ Exchange platform for a minimum investment of ₱30,903 ($500). Riscoin claimed investors could earn high guaranteed returns through crypto managers. Neither company was registered with the SEC or held crypto-asset service provider licenses.
The SEC's Enforcement and Investor Protection Department issued the orders despite both companies ignoring earlier warnings. Riscoin continued soliciting investments after a February advisory, while BG Wealth kept promoting on social media after a January warning. The regulator said the act of selling unregistered securities operates as fraud to the public and would likely cause grave injury to investors if left unchecked.
The cease and desist orders prohibit both companies from moving funds in bank accounts or disposing of assets. BG Wealth founder Stephen Beard was named in the SEC order, along with related entities Riscoin Exchange, Riscoin Trading, League of Seagull Lt., and Seagull Alliance.
The twin enforcement actions follow the SEC's broader crackdown on crypto fraud. The Commission previously charged PGI Global founder Ramil Palafox over an alleged ₱12.24 billion ($198 million) crypto and forex scheme, establishing a pattern of treating high-return crypto trading promises as securities fraud. The Philippine regulator brought 456 enforcement actions in fiscal 2025, obtaining ₱1.11 trillion ($17.9 billion) in monetary relief across cases including digital asset schemes.
🇵🇭 Filipino Impact
The SEC's specific focus on schemes targeting OFWs signals heightened scrutiny of platforms marketing high-yield crypto investments to remittance-dependent households. BG Wealth Sharing's targeting of OFWs with 1.3% daily returns shows scammers exploit the community's search for better returns than traditional remittance channels. Filipino investors should verify any crypto platform's SEC registration and BSP Virtual Asset Service Provider license before investing.
This article was written based on reporting from Tribune.
